For the following indenendent cases, in the space provided, calculate the amount of revenue that should be recordeu in 2019 under the revenue recognition principle (point of sale). 1. Company A rents office space to tenants. On October 1, 2019 they collected $18,000 from a tenant which represents 12 month's rent paid in advance.
For the following indenendent cases, in the space provided, calculate the amount of revenue that should be recordeu in 2019 under the revenue recognition principle (point of sale). 1. Company A rents office space to tenants. On October 1, 2019 they collected $18,000 from a tenant which represents 12 month's rent paid in advance.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter3: Accrual Accounting
Section: Chapter Questions
Problem 2MCQ: In December 2019, Swanstrom Inc. receives a cash payment of $3,500 for services performed in...
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![For the following indenendent cases, in the space provided, calculate the amount of revenue
that should be recordeu in 2019 under the revenue recognition principle (point of sale).
1. Company A rents office space to tenants. On October 1, 2019 they collected
$18,000 from a tenant which represents 12 month's rent paid in advance.
2. Company B sells heavy equipment. On December 1, 2019 a customer paid a
$10,000 deposit towards the purchase of a $50,000 piece of equipment. The
equipment was delivered on January 16, 2020 and the balance was paid that date.
3. On December 29, 2019 Company C ships $15,000 worth of goods to a customer, F. O.
B. destination. The goods arrive on January 3, 2020at the customer's office. The
customer pays for the goods On February 1, 2020.
4. Company D provides legal services for clients. On December 2, 2019 a client hires the
firm and pays a $10,000 advance payment. The firm did $4,ĝ00 of service in 2019.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F98e7ee7b-493e-4f8b-b918-bb89066c6b29%2Fc1e9fef1-d192-4b40-be5a-4aa5546144be%2F7qil9ec_processed.jpeg&w=3840&q=75)
Transcribed Image Text:For the following indenendent cases, in the space provided, calculate the amount of revenue
that should be recordeu in 2019 under the revenue recognition principle (point of sale).
1. Company A rents office space to tenants. On October 1, 2019 they collected
$18,000 from a tenant which represents 12 month's rent paid in advance.
2. Company B sells heavy equipment. On December 1, 2019 a customer paid a
$10,000 deposit towards the purchase of a $50,000 piece of equipment. The
equipment was delivered on January 16, 2020 and the balance was paid that date.
3. On December 29, 2019 Company C ships $15,000 worth of goods to a customer, F. O.
B. destination. The goods arrive on January 3, 2020at the customer's office. The
customer pays for the goods On February 1, 2020.
4. Company D provides legal services for clients. On December 2, 2019 a client hires the
firm and pays a $10,000 advance payment. The firm did $4,ĝ00 of service in 2019.
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